Non-current asset turnover
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Financial ratio analysis.
Non-current asset turnover is a management efficiency ratio.
It measures the annual revenue generated per unit of non-current assets.
Non-current asset turnover is calculated as:
Revenue ÷ non-current assets
Non-current asset turnover example
Revenue for the period is £40 billion and non-current assets are £20 billion.
Non-current asset turnover = £40 bn / £20 bn
= 2
The greater the non-current asset turnover, the greater the efficiency with which non-current assets are being used in the business.
